Research On The Impact Of Social Insurance Expenditure On The Income Gap Between Urban And Rural Residents In China

The income gap between urban and rural residents is an important component of the income gap of the whole country.The income gap between urban and rural residents in China has been shrinking over the decade from 2008 to 2018,but the gap between urban income and rural residents income is still quite large and the trend of narrowing urban-rural income gap has declined in recent years.How to further narrow the income disparity between urban and rural residents and to coordinate urban and rural development is a major problem in China's economic and social development.In the face of China's large income gap,it is necessary for the government to formulate and implement corresponding fiscal policies in the area of redistribution.Social security is an income redistribution policy directly applied by all countries,and the scale of expenditure on social security in China has been constantly expanding,as has the proportion of social security expenditure to GDP.Social insurance is a core part of social security.The proportion of social insurance fund expenditure in Social Security expenditure was 86.24% in 2017.Is there certain impact of social insurance expenditure on the income gap between urban and rural residents? Under what circumstances will the income gap between city and countryside be widened or narrowed? As the level of social insurance expenditure increases year b y year,how effective is social insurance expenditure to narrow urban-rural income gap? How does the increase of social insurance expenditure affect the income gap between town and countr y under the obvious urban bias? For this reason,this paper studied in depth in the following aspects by using a variety of research methods such as "normative research,empirical research,literature research,and comparative research",along the technical line of "theoretical research,current situation research,empirical research,comparative research,countermeasures research".First,theoretical analysis on the impact of social insurance on on the income gap between residents The main theories of social security affecting residents' income gap include Marx's reproduction theory,social contract theory,and social security economic theories that play positive roles in income redistribution.Based on the theory of income redistribution of social security,this paper analyzes the mechanism of social insurance affecting the income gap of residents.The impact of social insurance on the income gap of the residents is reflected in the adjustment of social insurance to income redistribution.On the one hand,the government collects social insurance premiums to form social insurance funds,and on the other hand,these funds are distributed to the insured through the benefit payment mechanism.There are three ways for social insurance to regulate income redistribution.Different modes of financing and payment realize different income distribution adjustment modes of social insurance.In the model of the combination of definite fund and fund accumulation system,the income of workers is distributed over their lifetime.In the model of pay-as-you-go and definite treatment,the income of the younger generation of workers is redistributed between the current two generation.and among the same generation.Social insurance regulates the redistribution of income in multiple dimensions.The effect of social insurance on adjusting income gap.is affect by the coverage of social insurance,the collection of social insurance funds,the payment mechanism for benefit,the government transfer payment system,and the population structure.Secondly,an analysis of the income gap of urban and rural residents in China.Overall,from 1990 to 2017,there was still a large gap between the per capita income of urban and rural residents.Per capita Income gap of urban and rural change from rise to fall to rise and fall.From the structure,from 2008 to 2017,except for net operating income,all other incomes of urban residents are higher than those of rural residents,and the wage income gap between urban and rural residents and the net income of transfer have a clear downward trend.From a regional perspective,from 2008 to 2017,the income gap between city and country residents of 31 provinces and cities has been narrowing year by year.In four provinces,the income divide between urban and rural residents is larger than that of urban and rural residents nationwide,and the income gap between city and countryside residents in the western region is the largest.Thirdly,an analysis of the basic social insurance situation in China.After decades of hard work,China has established a basic endowment insurance system that covers both urban and rural residents through social integration and individual accounts,a basic medical insurance system that integrates social integration with individual accounts for urban employees,the basic medical insurance system covering urban and rural residents,the unemployment insurance,the industrial injury insurance,and the maternity insurance system under social coordination.The income of the social insurance fund in China increased by 41.37 times from 1998 to 2017.The coverage of social insurance has been continuously expanded,and the number of participants have made progress towards full coverage of the population.The scale and level of social insurance fund expenditure have been increasing year by year.In 1998,social insurance expenditure was 163.689 billion yuan,and in 2017 it reached 571.46.billion yuan,an increase of 34.91 times.Per capita social insurance expenditure increased from 131.20 yuan in 1998 to 4110.99 yuan in 2016,an increase of 31.33 times.Fourth,the empirical test of the impact of social insurance expenditure on the income gap between urban and rural areas.This paper makes a theoretical analysis of the influence of social insurance expenditure on the income gap of urban and rural residents,and finds that when the ratio of per capita social insurance expend iture of urban and rural residents is greater than the ratio of income of urban and rural residents before they receive social insurance payment,the income gap between urban and rural residents widens with the increase of social insurance expenditure.On the contrary,when the proportion of social insurance expenditures received by urban and rural residents is smaller than the ratio of urban and rural residents 'income before receiving social insurance payments,the increase in social insurance expenditure s will reduce the urban-rural income gap.In order to analyze more comprehensively the impact of social insurance expenditure on the income gap between urban and rural areas,models are constructed to carry out empirical analysis,and the income gap betwee n urban and rural residents is used as the explanatory variable.The per capita social insurance expenditure,the per capita basic old-age insurance expenditure,the per capita basic medical insurance expenditure,and the new rural social endowment insurance system,urban bias of social insurance expenditure are used as explain variables.At the same time,the influence of the level of social insurance benefits between urban and rural areas on the income gap between urban and rural areas is empirically tests.by measuring MT index.The empirical result show that with the increase of social insurance expenditure,the income gap between city and country side residents has not narrowed,but has widened;the increase in expenditure on basic old-age insurance widens the income gap between town and country residents;the impact of basic medical insurance expenditure on the income gap between urban and rural residents is not significant.Rural endowment insurance system adjusts positively the income distribution of urban and rural residents,but its establishment time is relatively short,the treatment is low,and its role is relatively limited;it can not change the direction of adjusting urban and rural income distribution by basic endowment insurance expenditure,b ut only reduce the extent of widening income gap between urban and rural residents.The obvious urban bias in social insurance spending has widened the income gap between urban and rural areas.There is a gap in the payment level of social insurance pay between urban and rural areas,which leads to the reverse adjustment of social insurance expenditure on urba n and rural income distribution.Fifth,from the perspective of social insurance expenditure,the reasons for widening income gap between urban and rural residents are analyzed.For a long time,China has implemented different social insurance systems in urban and rural areas,and the establishment of rural social insurance systems has lagged behind that of urban areas.The standard of financing and the level of treatment of rural social insurance differ greatly from that of urban social insurance,resulting in much less pensions than urban residents and less medical reimbursement than urban residents.The distribution of social insurance expenditure between urban and rural areas is different,more than 86% of social insurance expenditure is allocated to urban residents.There are obvious urban bias,resulting in urban residents receiving higher transfer income than rural residents.Financial subsidies to rural social insurance funds account for 40% of the total,and financial subsidies to rural social insurance funds are weaker than those to urban social insurance funds,resulting in rural residents receiving less insurance benefits than urban residents.Sixth,based on the social insurance expenditure perspective proposals to reduce the income gap between urban and rural areas are put forward.It is necessary to realize a unified social insurance system between urban and rural areas in order to eliminate the gap in the level of social insurance benefits between urban and rural areas.A unified social insurance system between urban and rural areas can eliminate the urban-rural differences in the social insurance system and narrow the income gap between urban and rural residents.First of all,we will further improve the social insurance operating mechanism by improving the overall level of social insurance,expanding the coverage of social insurance,expanding the sources of social insurance funds,and regulating the management of social insurance,so as to speed up the realization of a unified social insurance system for urban and rural areas.Secondly,.we will promote the unification of the urban and rural social insurance system through the merger of urban and rural social insurance systems,the integration of financing mechanisms and treatment levels,and the unification of social insurance administrative agencies.Again,we will promote and accelerate urbanization reform by continuing to deepen the reform of the household registration system,promoting equal access to basic public services in cities and towns for agricultural transfer populations,and improving the supply capacity of new urbanization.